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Seeking Alpha/Equity Management Academy/2-4-2021
“Gold’s price does not reflect the fundamentals, which continue to worsen. The economy still requires large stimulus packages. Every time the Fed and government delay, the deeper the economic damage is going to be. With the amount of stimulus that they are discussing coming into the market, it is difficult not to see how it can’t cause the US dollar to lose even more value and for inflation to increase significantly. We may be looking at a situation like we saw in the 1970s, with inflation rising and interest rates hitting 14 percent or more. Precious metals are a traditional safe haven during such times. You can convert your fiat currencies into gold and protect its value. If you buy gold, you are in effect selling dollars. Precious metals are volatile, but we recommend having one-third of your net worth in precious metals to give you the protection you need against the coming inflation and devaluation of the US dollar. The value of gold today does not reflect its intrinsic value in relation to all the other markets.”
USAGOLD note: Strong views on gold and silver from the Equity Management Academy with some well-constructed theory on how and why the precious metals are “likely to move up from current levels.”
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